Car Insurance Tips To Lower Your Premiums
It is no wonder that finding the best deal for your car insurance is so important for many people, after all, why pay more for something if a cheaper deal exists elsewhere. There are so many companies these days that specialise in car insurance and can offer you various deals that it can seem like a disheartening task attempting to find the best car insurance deal for you as prices may vary.
Many companies have now realised that offering specialised motor insurance aimed at certain areas can be a great way at targeting a minority group and if you fall into any of these categories then it can really help you to find a good deal. You may also find that they offer certain extras that may be of use to you that many other companies do not offer.
There are of course a number of car insurance tips that could save you a vast amount of money. These include fitting an industry standard alarm system or an immobiliser as this will help to increase security and therefore will ultimately help to keep down your premiums as your car will be more protected against the threat of theft or damage and so you will be less likely to make a claim.
With many policies you may find there are a number of additional extras that you have to pay for that you do not really need and so it is worth checking your policy first as these extras will up the cost of your premium with perhaps little or no benefit to you. The fewer extras that the car insurance company has to provide should you be involved in an accident, the lower the cost of the cover.
Where you park you car, and more so overnight, can also make a big difference as many insurers will be able to offer you a reduced rate if you can park somewhere that they deem to be 'safe'. If you are able to then you should park on a driveway as this is considered to be one of these safe places as it should help to limit the risk of your car being stolen or any accidental damage occurring more so than if you were to park your car on the road.
Other car insurance tips that could help save money include; making sure that only drivers who will regularly drive the car are named on the insurance. It is not wise to add a young, and perhaps more inexperienced driver to insurance policy as the total will still be decided using the youngest driver. Also make sure to protect your no-claims bonus as you may find that some insurers will offer substantial discounts to those drivers who are considered to be safer.
If you decide to change your car, check with your insurer if the model will have a significant effect on the premium as a sporty model can mean a higher insurance group and often, a slightly different version could save you a considerable amount in comparison.
The most obvious tip is however to drive with more care and perhaps to consider signing yourself up for driving courses as many insurers will be able to offer you a discount if you have more driving experience.
There are lots of different types of car insurance in Australia:. This article will explain the benefits of the most common types of car insurance and why it is important to have the right cover at the right price
CTP or Green Slip Insurance
Compulsory third party the most basic cover and every car in Australia must have it. It provides vital cover against claims for compensation if you severely injure or kill someone in a motor accident.
If your car is not worth much you may think taking out compulsory third party is enough. However, it doesn't cover you for damage caused to other people's property such as if you're unlucky enough to run into a Mercedes Benz. It is the least expensive option, but it really is essential. It covers you for the damage you may cause to another car and may include limited cover for damage caused to your car by an uninsured driver.
Third Party Property Insurance
The next level is Third party property, fire and theft insurance. This also covers you if your car is stolen or burnt out.
Comprehensive Car Insurance
Comprehensive car insurance is the best cover option but also the most expensive. It includes the cost of crash repairs or replacing your car, even if you're at fault.
Money Saving Tips
Shop Around
You can save hundreds of dollars by shopping around for comprehensive car insurance. When looking for a new policy, get at least three quotes. And if you really want to save, gather several more than that. According to a 2004 survey rates for comparable coverage can vary by more than $500 for 12 months' worth of coverage.
When shopping around, there are the independent agents who sell the insurance of various different companies. We recommend that you see several responsible Insurance Brokers like I.C. Frith.
Other than by shopping around, there are ways to save on the premium:
Choose a Higher Excess
A no claim bonus can get you a discount of up to 70%. You need up to six claim-free years to be entitled to the maximum no claim bonus . Find out what the excess level is on the insurance policy you are thinking of buying, there might also be several different excess levels within the same policy too. So, for example, the excess for theft would be a completely different figure to that of damage. The excess on an insurance policy is the portion of the claim a consumer will pay themselves, the rest of the cost then being met by the insurance company. Most car insurance policies do have upper limits for pay outs, so do check to make sure these upper limits would in fact cover you for what you stand to lose.
Car Insurance Tips
Voluntarily raising your excess will in a lot of cases reduce the cost of your insurance, so it's well worth asking the insurer to give a quote for a higher excess and seeing what affect is has on the insurance cost. Another way to reduce your premium is by Nominating drivers or restricting the use of your car to drivers over twenty-five years of age.
Don't forget to ask for any discounts - for example if you have another policy with the same company, you're a long-term customer or if your car has a great theft alarm or an immobilizer. Finally don't be afraid to do what is known as "Dutch Auctions." Get the best price you can off several companies and then try to do one better. You never know what the lowest price is until you make enough inquiries.